60.1K

Verified Solution

Link Copied!

Rocky owns and operates Balboa's Gym located in Philadelphia. The following transactions occur for the month of October: 1. October 2 Receive membership dues for the month of october totaling $8,500. 2. October 5 Issue common stock in exchange for cash, $12,000. 3. October 9 Purchase additional boxing equipment for $9,680, paying one-half of the arount in cash and issuing a note payable to the seller for the other one-half due by the end of the year. 4. October 12 Pay $1,500 for advertising regarding a special membership rate avallable during the nonth of october. Pay Liability insurance to cover accidents to members for the next six months, starting Novenber 1 , 6. October 22$6,900. 7. October 25 Receive cash in advance for November memberships, $5,600. 8. October 30 Receive, but do not pay, utilities bill for the month, $5,200, 9. October 31 Pay eaployees' salaries for the month, $7,300. Required: 1. Record each transaction. 2. Identify the transactions involving cash. 3. Assume the balance of cash at the beginning of October is $16,600. Post each cash transaction to the Cash T-account. 4. Prepare a statement of cash flows for the month of October, properly classifying each of the cash transactions into operating. investing, and financing activities. Assume that the balance of cash at the beginning of October is $16,600. Complete this question by entering your answers in the tabs below. Assume the balance of cash at the beginning of October is $16,600. Post each cash transaction to the Cash T-account. Prepare a statement of cash fiows for the month of October, properly elassifying each of the cash transactions into operating. investing, and financing activities. Assume that the balance of cash at the beginning of October is $16,600. (kipt cash oveticws and decrease in cash as negative amounts. Total entries from the same source together when entering in the statemert of cash flows

Answer & Explanation Solved by verified expert

See Answer